What Is the Meaning Of Recruitment Metrics & Its Importance

Duration: 6-8 minutes

Recruitment metrics are performance indicators (KPIs) that give you an idea of how effective your hiring and recruiting processes are.

How Can You Track Recruitment Metrics?

It''s relatively easy to determine which KPIs and recruitment metrics you need to track. Keeping tabs on them can be difficult.

You might do it by hand with a spreadsheet.

However, this method is unlikely to pan out for companies with datasets.

Fortunately, many applicant tracking systems (ATS) will do the heavy lifting for you.

Your ATS likely features a dashboard that generates reports on the metrics you''re most interested in. So don''t be scared off by this feature; feel free to dive in after reading this guide.

The 5 Recruitment Metrics You Ought to Be Watching (and How to Use Them)

If you maniacally chase every possible recruiting metric to collect and improve, you will end up never having any work done. Better have some priorities before overcommitting yourself.

These five key measurements are what you will need to get your recruiting process underway:

Time to Hire (TTH)

A lot of human resources experts view hiring time as the metric to keep track of. It measures how effective and efficient your recruiting and talent acquisition process is.

Time to hire refers to the time span from when a candidate applies for his or her job until they finally accept your offer, usually measured in days. You can calculate it per employee or take an average across all positions.

The longer your time to hire, the more money it costs your company. Keeping the candidates too long might mean that they have accepted others—missed opportunities.

Source of Hire

The source of hire metric will tell which of the channels are most effective at bringing in candidates.

Every recruiting team has sources for acquiring talent, which range from a company''s career pages and employee referrals to recruiters and online job boards.

Do you know which source brings in the hires?

You will thus be able to identify, so you can efficiently allocate more budget, time, and attention to the significant sources; at the same time, you can cut spending on channels that do not work out as per your expectations.

You can find out about the sources of your competitors from your ATS reports.

Besides, a web analysis would have helped you keep a track of candidate engagement on your website and virtual platforms.

You can also include a question in your application asking the applicants how they heard about the opening.

How to Calculate Source

To determine the best sources to find the right candidates, add the total number of applicants for each source and then divide the number by the number of candidates you interviewed or hired.

You can also look at the cost of each channel for an analysis. Such costs can be estimated by dividing the spend on posting and advertising in each channel by the number of candidates or new hires the outcome brought.

Application Completion Rate

The application completion rate, abandonment rate and drop-off rate are terms, which are used almost interchangeably.

This recruiting metric brings out the percentage of the candidates that successfully complete your application process compared to the ones who start the application but never complete it.

You may think that calculating this metric isn''t necessary, considering that you are getting a good volume of resumes. However, it brings out vital areas of improvement.

For example, if your application completion rate is low, it might indicate an error you are not aware of.

The second way would be that if your application process is not optimized for devices, too, many of the top candidates will get frustrated and choose not to even start it.

You are asking confusing questions or expecting people to give a lot of their personal information, etc.

Diversity

Companies are struggling to fulfill a better mix of diversity and inclusion.

As we found in our guide to Indicators of a Remote Company Committed to Diversity, Equity and Inclusion, millennials and Gen Z candidates are attracted to companies with strong DE&I initiatives in the workplace.

The different organizations get an edge up over their rival competitors by prioritizing the DE&I goals over them.

In measuring the diversity, calculate the ratio of hires that align with your DE&I recruitment objectives in your recruitment process.

For example, say you set the goal to hire 10 female software engineers within a year. You hired six. Your team, therefore, hit 60% of its diversity recruitment goal (6/10=0.6).

Use this recruiting metric along with your past hiring numbers to identify any bias that might be affecting your hiring process. Then read about the ten things to change and do to make recruiting better.

Job Offer Acceptance Rate

The job offer acceptance rate is the metric that indicates the number of job applicants who accept your employment offers.

How high applicant acceptance rates suggest that everything is fine with the process of hiring a remote team.

If acceptance rates are low, this could suggest that your offer is uncompetitive or is not attractive enough to engage talent.

Try to enhance the benefits package for employees or to include some practices that famous remote companies do.

Final Thoughts

Now let''s apply those recruitment metrics well!

After the 2021 Great Resignation, remote companies started taking on the job market.

If you''re not using your recruitment metrics, you may be failing to receive highly-sought-after top talent. So, today apply these 5 recruitment metrics to make data-driven decisions for your team.

Besides, looking for exceptional professionals, it is best to use a job board.